Cooler inflation in 2023 is affecting how much Canadians will pay in income tax this year.
It would have been nice if they had formatted this as a table. It’s painful to read. Here’s a better one: https://www.taxtips.ca/taxrates/canada.htm
Da real MVP right here.
Thanks! Much more readable.
Smh how 250k is the cutoff for highest bracket. Add brackets all the way up to 10M / 60% please.
I make less than $16k per year yet am in the same bracket as someone making $55,867 per year … which seems like some dystopian hellhole I’m never gonna dig myself out of.
That sucks, but to be fair that’s not really the situation. The basic personal amount is deducted from your income, so you pay near-zero tax.
You should be paying negative tax (i.e. getting a universal basic income), but you’re not really paying any tax now.
Edit: the basic personal amount is increasing to 15.7K, so you’ll be taxed at 10% of $300 if you don’t have any other deductions at all, to the total tune of $30-ish.
Just because you’re in the same bracket it doesn’t mean you end up paying the same overall percentage at the end of the day.
Like the other comments mentioned, there’s a basic personal amount to be deducted from so they don’t start taxing you the first dollar you make.
Also in those income levels you get more back in the form of Canada Workers Benefit, a refundable tax credit which alone is probably enough to put your tax balance in the negative. On top of that you get more GST/HST credit, and if you’re in BC a $0 deductible with pharmacare.
Have you ever done your taxes before?
Great salary
With the coat on everything it should basically be no tax until you’re at 250k and start the brackets there. We all know those with loads of money don’t pay their fair share of taxes
